Earnings Per Share

9 Months Ended

Sep. 30, 2011

Earnings Per Share

Basic earnings per share of common stock (“EPS”) is calculated by dividing net income attributable to common stock by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share incorporates the treasury stock method, and is calculated by dividing net income attributable to common stock by the weighted average number of shares of common stock and potential common stock equivalents outstanding during the period, if dilutive. Potential common stock equivalents include incremental shares of common stock issuable upon the exercise of stock options and employee stock awards. Income attributable to common stock is calculated as net income less dividends paid on the Series A Preferred Stock. The Company declared and paid to holders of Series A Preferred Stock cash dividends of $930 and $2,792 ($.5781 per share) for each of the each of the three and nine months ended September 30, 2011 and 2010, respectively.

The following is the calculation of basic and diluted weighted average shares outstanding and earnings per common share for the periods indicated:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Net income	$	3,836	$	2,862	$	5,897	$	8,087
Preferred stock dividends		930		930		2,792		2,792

Income attributable to common stock	$	2,906	$	1,932	$	3,105	$	5,295

Weighted average common shares:
Weighted average common shares — basic		11,197,681		11,128,802		11,187,298		11,117,060
Dilution effect of stock options/awards outstanding at the end of period		29,043		—		20,219		—

Weighted average common shares — diluted		11,226,724		11,128,802		11,207,517		11,117,060


Net income per common share:
Basic	$	0.26	$	0.17	$	0.28	$	0.48

Diluted	$	0.26	$	0.17	$	0.28	$	0.48

The following options and unvested restricted shares, which could be potentially dilutive in future periods, were not included in the computation of diluted net income per share of common stock because the effect would have been anti-dilutive for the periods indicated:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010

Anti-dilutive shares		57,425		76,873		83,864		79,897